Bank of America Foreclosures in Covid-19 Emergency West Virginia Class Action

Can a class action provide help in a national emergency? This class action seeks to stop foreclosures by Bank of America, NA (BoA) in West Virginia “during the national emergency caused by the spread of the Covid-19 virus. During this nationally declared emergency, foreclosures cannot be conducted at an appropriate time consistent with the contracts governing the foreclosures (deed of trust), the common law of West Virginia, and the statutory framework provided for non-judicial foreclosure sales.”

Also named as a defendant in this case is Samuel I. White, PC, “the substitute foreclosure trustee engaged” by Bank of America to conduct the foreclosure sale of the Shuffs’ property on March 16, 2020.

The complaint claims that the plaintiffs, James and Lisa Shuff, “were victimized by a predatory lending scheme perpetrated by a manufactured housing retail dealer and Countrywide Home Loans, Inc., whereby the dealer and lender originated a fraudulent home loan that far exceeds the value of the property.”

How did this happen? The Shuffs looked at a mobile home in 2005, and the salesperson claimed he could get them a loan with Countrywide so that they could purchase it and the plot of land it would sit on. They gave the salesperson their information and application for credit. The complaint says, “On information and belief, Countrywide arranged for a valuation of [the Shuffs’] home with an appraiser who has a reputation for providing bogus, inflated appraisals.”

The complaint alleges that the closing was conducted at a Pizza Hut, was “rushed,” and did not allow the couple to ask appropriate questions. The final loan amount was $103,377.

When Countrywide went out of business, the complaint says, its successor-in-interest, BoA “increased the indebtedness to over $142,000 (more than double the value of the property)…”

In 2018, James Shuff was injured at his job and had to have surgery. This caused a “temporary” change in the couple’s income, the complaint says, and they requested payment assistance from Bank of America. The Shuffs claim they made the three payments under the plan as required, but BoA claims it did not receive the third payment.

To make a long story short, the Shuffs’ request for a loan modification was ultimately turned down. During the time the loan modification was under consideration, the complaint claims that BoA refused or returned the couple’s payments.

It now wants to foreclose. The Shuff say they could now pay the monthly payments required under the terms of the loan although not their total arrears. The complaint alleges that it is not right to hold a non-judicial foreclosure sale because it cannot be done appropriately.

The class for this action is all West Virginia borrowers whose loans are serviced by BoA or who have the same foreclosure trustee whose loans are set to have a foreclosure sale any time after 120 days following the filing of this action (which was on March 16, 2020).

Article Type: Lawsuit
Topic: Real Estate

Most Recent Case Event

Bank of America Foreclosures in Covid-19 Emergency West Virginia Complaint

March 16, 2020

Can a class action provide help in a national emergency? This class action seeks to stop foreclosures by Bank of America, NA (BoA) in West Virginia “during the national emergency caused by the spread of the Covid-19 virus. During this nationally declared emergency, foreclosures cannot be conducted at an appropriate time consistent with the contracts governing the foreclosures (deed of trust), the common law of West Virginia, and the statutory framework provided for non-judicial foreclosure sales.”

Bank of America Foreclosures in Covid-19 Emergency West Virginia Complaint

Case Event History

Bank of America Foreclosures in Covid-19 Emergency West Virginia Complaint

March 16, 2020

Can a class action provide help in a national emergency? This class action seeks to stop foreclosures by Bank of America, NA (BoA) in West Virginia “during the national emergency caused by the spread of the Covid-19 virus. During this nationally declared emergency, foreclosures cannot be conducted at an appropriate time consistent with the contracts governing the foreclosures (deed of trust), the common law of West Virginia, and the statutory framework provided for non-judicial foreclosure sales.”

Bank of America Foreclosures in Covid-19 Emergency West Virginia Complaint
Tags: Improper Procedures During National Emergency, Mortgage or Loan Modifications